Looking For A Contract Manufacturer Near Me? We Can Help
So, you’re looking up contract manufacturer near me on the internet. You’re in luck—Conversion Technologies International can help you demystify contract manufacturing. Just read the answers to some of our most frequently asked questions below.
What Does A Contract Manufacturer Do?
Before you go in search of a contract manufacturer near me, you must first understand what they really do. Typically, there are two main types of third party manufacturers: tolling manufacturers and contract manufacturers.
While a toll manufacturer requires that the client procures the raw materials for a project, a contract manufacturer will handle the project from the beginning to the end. This means that you sign a contract from the outset, and you don’t handle any of the manufacturing from there on out—nor the procurement of the necessary materials. Though, you may consult during initial pilot runs, as well as any alterations required afterward.
What is An Example of Contract Manufacturing?
A great example is what automotive companies like General Motors do every day. While the company still owns the final product, they are not responsible for manufacturing it—nor must they procure the materials necessary.
Although this sort of relationship requires a good deal of trust—and careful selection —there is a reason why it’s utilized in so many major industries. Or rather, multiple reasons…
Why Do Companies Choose Contract Manufacturers?
One of the major reasons why companies choose one is that it’s simply easier. You don’t have to handle the manufacturing yourself, and the process tends to be much smoother and faster, especially when you’re in the beginning stages of starting a business. Additionally, companies that are in the midst of scaling up often switch from small scale, in-house production to large scale orders. A good partner can help you make that transition.
This method is also, often, less expensive in the long term. Rather than paying permanent employees—and paying for their training in addition—you’ll simply pay a contract manufacturer outright. This also allows you to avoid renting a facility or equipment, in turn. If you’re not certain about how long you’ll require certain products, or the longevity of a specific line, contract manufacturing is highly beneficial. You can have short term orders executed easily, while retaining involvement.
How Do I Select Third Party Manufacturing?
While some business owners choose toll manufacturing, others prefer contract manufacturing as their third party manufacturing method. Toll manufacturing does allow you to choose raw materials outright before manufacturing commences. However, if you’re comfortable with the selection of a contract manufacturer (as well as the pricing offered by that manufacturer) it can be more straightforward to choose it outright. For some business owners, this option offers a complete package. More responsibility is on you with toll manufacturing, resulting in more work from you—and sometimes more money spent.
How Do I Find A Good Contract Manufacturer Near Me?
When you’re looking for a business to work with, think of location. While working with a contract manufacturer near you isn’t always a “must”, it’s good to have. Why? Because when your partner works near you, it’s easier for you to visit factories and observe the manufacturing process in action, while also consulting with the manufacturers face to face. A good contract manufacturer doesn’t need you to be present in order to deliver great product, but they’ll be happy to work with you and take your input. What’s most important is that you can benefit from the hands-on approach, and learn from it as well.
If you’re looking up how to find a good contract manufacturer near me, begin by asking for references from other people in your industry. If you have a business mentor, they may be able to offer a referral. Conversely, if you don’t know anyone in the industry with referrals, no worries—you can look at online reviews, and either way you should. Additionally, it’s a good idea to ask potential manufacturers for references. If you can’t find testimonials and references for a potential manufacturer, it could be a sign that the manufacturer isn’t yet experienced enough.
What Industries Use Contract Manufacturing?
A wide variety of different industries utilize contract manufacturing, many of them major. The tech industry broadly uses them, including giants like Apple. Additionally, you’ll find that medical device companies produce through contract manufacturing.
The automotive industry also relies heavily on this method, with General Motors being a massive client. There isn’t a single “type” of business that requires contract manufacturing. It can be beneficial in virtually any industry.
What’s the Difference Between Private Labeling and Contract Manufacturing?
In theory, contract manufacturing may sound somewhat similar to private labeling, but there is a definite difference. With private labeling, you’re essentially ordering a product from the private labeling company. You don’t request any changes—the only thing individualized about it is your brand name applied to the product.
A contract manufacturer, on the other hand, has you involved every step of the way. The contract manufacturer will have you consult and take your input and feedback following prototypes and trial runs. Additionally, you’ll work with a contract manufacturer on formulas—you’re not just ordering a product as is.
There are plenty of reasons why you might be looking for a contract manufacturer near me. Start by looking for one with experience—try calling 419-924-5566 or contacting CTI here. You’ll get all the advice and assistance you’re looking for!